THESE past few weeks we’ve heard suggestions, hopes and pleas from various industry voices, amid the teasers of what Budget 2023 would hold. Well, the promised date came and Budget 2023 was presented to all, and before the commentaries could begin in earnest – Parliament was dissolved!
While we leave it to the experts to deliberate on whether the budget should have even been tabled in light of what was to follow, perhaps the industry could instead examine the possibilities that may have been enabled by this budget as a guide in making our own plans for the year ahead.
The International Monetary Fund, in its recently published World Economic Outlook report for October 2022, has raised its 2022 economic growth forecast for Malaysia, as measured by gross domestic product, to 5.4% from 5.1%, at a time when global growth is forecast to slow from 6% in 2021 to 3.2% in 2022, and 2.7% in 2023.
For the most part, the budget that was proposed did hold some promise that the tribulations of the industry in facing the challenges of the coming year were duly considered, and while we may not know how much of the budget will remain intact when the new cabinet tables it or what of that budget will eventually be passed, there may yet be some obvious direction in the original that hint some possible paths for us to explore.
As hoped for, due focus had been paid to developing our micro and small-medium enterprises (MSMEs), which constitute 98% of the businesses in the country, a range of initiatives to help support the growth of this sector from funds, grants, to tax relief meant to improve their income and productivity, enabling automation and digital transformation.
Among them are measures to assist young traders and female entrepreneurs. This would have been a welcomed move, as female-owned businesses often face greater challenges in accessing finance and other resources.
The local technology sector too received a shot in the arm, which would help spur innovation and possibly keep our local “soonicorns” from seeking assistance on foreign shores.
So what can we read between these lines for the marketing industry?
With no direct benefits provided for the industry specifically in the budget, the marketing sector will have to feed off the growth of enterprise instead and see the opportunities that will come from building local businesses into strong brands ready for cross-border expansion.
It was amid the gloom of the 80s and 90s that we saw many SME brands take that leap forward; and have today become household names, while more established brands were lumbered to move. So, this is not something new but almost cyclical. Often, the MSME business is seen as too small for the effort, so mindsets will have to change.
This is a path that the Malaysian Advertisers Association (MAA) would be keen to play a more active role in, as we have a responsibility not just to our members but also to our future members, and any support we can provide that helps enterprises transition into successful local brands will indeed benefit the industry as a whole.
Also tabled in the budget were incentives for multinational companies to establish operations here, along with tax incentives to attract investors as well as matching grants and support of the Made in Malaysia campaign to boost the development of local products. This is an area that ideally the marketing industry should be collaborating with the government on, to add greater value to what that means… rather than just a statement of country of origin.
The promotion of tourism and tourism-related initiatives, is another avenue for a collaborative effort to create a plan on how to promote Malaysia, not merely in localised silos but as an experience; a slice of all that Asean has to offer – in one place!
The MAA and other key stakeholders in the marketing industry can be engaged for our respective expertise by the relevant authorities, to work on a framework of what the “Malaysian Experience” is, which can be used as the direction for the respective body’s campaign briefs, staying independent of any tender and selection processes to ensure transparency, while ensuring a more holistic approach.
5G is seemingly back on track and with the proposed effort to increase coverage nationwide and lower costs, along with the further allocation for the Jendela digital infrastructure project, the direction should be to embed technology throughout the god-made ecological beauty, man-made luxury, rich history, cultural diversity and tantalising gastronomical journey that’s Malaysia, stitching a seamless experience to cater to varied tastes of our visitors – young and old alike.
The proposed development of digital hubs and alternative data centres would undoubtedly benefit the digital economy, and may see as yet unexplored avenues of the gig economy materialise. There are certainly more unrealised opportunities in the “do-it-for-me” economy, where 5G and digital connectivity may be able to bridge the gaps, and this would mean potential new businesses to support the marketing industry.
Marketers are often the early adapters of technology, as the industry is always in search of new tools for the trade. However, more often than not there’s a disconnect between what we as marketers need and what is made available by tech providers.
Digital connectivity will undoubtedly open the prospects of bridging this gap if the MarTech industry is developed locally, as our multicultural population with its micro nuances offers an ideal “incubator” environment and with the sector still largely unexplored it offers Malaysian tech businesses an avenue to be global game changers even.
Rather than merely look to tech for new opportunities, maybe it’s time for the industry itself to embrace the gig economy?
Perhaps the next evolution of marketing services locally is the adaptation of a more flexpertise model to fill in the talent gaps, to make them as limber as will be needed to cater to the prospective MSME businesses that will require their support to compete regionally if not globally.
Undoubtedly the development of human capital and upskilling of workers will also put us somewhat back on the track toward that seemingly forgotten goal of a “knowledge economy”.
The industry should collectively come together to see how, rather than facing a perpetual “brain drain”, we can become a hub for skilled manpower for the marketing and content creation sector.
This is an agenda that the MAA has already been in conversation with our partners in the media, and the institutes of higher learning on the possibilities of bringing the syllabus closer to the skills and knowledge required to be industry-ready today.
While the proposed budget had stayed true to the expectation of having many positives, providing good tidings for the construction, healthcare and sustainable energy sectors amongst others, much of the effort was placed on alleviating the rakyat as we get to grips with the current geopolitical tensions, the volatility of the currency markets and the rising inflationary risks.
How much of the original budget remains is as opaque as who will eventually table it the next time out, we can perhaps take heed that some of the initiatives proposed are certainly worth considering as we make our own plans to navigate the year ahead.
We should consider the role we, in the marketing industry and business in general, have to play too, be it industry-wide or working collaboratively with the government, in building the brand economy and ensuring the heartbeat of brands and businesses alike have the momentum to drive us forward.
The new year is literally around the corner, so no matter what is eventually passed, we are left to our own devices for the first part of the year at least before any impact is felt.
For now, it would be best for the associations, the clients, the media owners, the agencies and of course the ministries; all the stakeholders in the industry, to come together to mark our own course forward with a glimpse of some possibilities that should still hold true come what may! – The Vibes, October 16, 2022
Claudian Navin Stanislaus is president of the Malaysian Advertisers Association
